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Don't Be Lulled By the Stock Market's Smooth Ride

It's Been a Long Time Since the Last Correction—And That's a Reason to Plan for the Next One

By

Morgan Housel

Sept. 19, 2014 11:29 a.m. ET

After a five-year surge, the Dow Jones Industrial Average hit a new all-time high this past week. If you were along for the ride, congratulations.

But here's what's unnerving: It has been more than 700 trading days since the Dow closed 10% below its previous high. That is the fourth-longest run without a drop of that size, known as a correction, since 1929, according to data from S&P Capital IQ.